A US federal judge on Monday granted Alibaba Group Holding a preliminary injunction preventing the US government from denying Pentagon contracts to companies because they or their parent companies or subsidiaries work with firms that lobby for the Chinese e-commerce giant. The ruling allows Alibaba to retain US lobbyists who also represent defence contractors, removing a potential obstacle to its legal challenge against the Pentagon’s designation of the company as a Chinese military-linked entity.
Alibaba sued the US government in June after the Pentagon added it to a list of Chinese companies allegedly supporting China’s military, alongside search engine provider Baidu, electric vehicle maker BYD and other major technology and manufacturing firms. Alibaba has denied any military ties, stating that its products and services focus on retail, logistics and enterprise technology. The injunction does not remove Alibaba from the Pentagon’s list, which restricts contracts with listed companies and is set to extend to certain third-party purchases of their products and services from 2027.
Several other Chinese companies are also challenging their inclusion on the Pentagon’s list. Two BYD subsidiaries sued the US Department of Defense over restrictions on Pentagon contractors hiring lobbyists associated with blacklisted firms. Meanwhile, drone manufacturer DJI secured a court order requiring reconsideration of its inclusion on the list, while biotechnology company WuXi AppTec obtained a preliminary injunction blocking its designation. The cases highlight growing legal disputes over US restrictions on Chinese companies and the potential implications for defence supply chains and international business activities.
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